Volumetric offsite house builder TopHat is winding down its factory operation.

The Goldman Sachs-backed firm blamed dwindling orders for the decision to open consultations with the workforce at its factory near Derby.

TopHat said the planned wind-down would see all factory orders completed.

Overall TopHat’s accumulated losses stand at around £87m since being established in 2016.

A company statement said: “In response to the challenging market environment over the last several years, TopHat has been gradually reducing its workforce.

“Unfortunately, due to the continued reduction in future pipeline, TopHat is in the process of making most of the factory staff redundant by following a statutory consultation process.

“This orderly wind-down of volumetric operations will put the business in a position to assess all future options.

“It is our strong belief that there is a continued need for Category 1 and Category 2 modular in the UK and we hope that we can capitalise on this in the future.”